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I was at the local Annual Calgary Motorcycle show last weekend and was speaking with BMW Motorad Canada about the K1600 transmission recall. They stated they had received 500 repair kits and had started shipping them out to the dealers the previous week. My local dealer had confirmed that they had received the tools and had a few of the kits to start work on the pre-sold K1600 units. From there they would be working on the customer bikes and that I was still on for end of January bike pickup and repair.



I did also ask BMW Canada about any type of extended warranty program regarding the repair and although there was nothing specific they do have a good will program that relates to issues like this if there were failures on the transmission out of the warranty period.



Randy
2018 K1600GTL
 

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Makes me wonder why an authorised BMW dealer has to have further service tools
 
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Makes me wonder why an authorised BMW dealer has to have further service tools
To ensure that this undertaking goes off with the fewest possible issues. There are items in the toolkit that are not really that unique but BMW has wisely in my opinion decided to make the tools part of the process so that their support of the dealer technicians is easier and more predictable and the results for the customer are less variable (more consistently correct).
 

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Makes me wonder why an authorised BMW dealer has to have further service tools
Beause the repair as described in the work steps is unprecedented.

A quick gander at the parts fische shows that the shafts are sold as a single unit. Typically one cannot even purchase the separate gears and the shaft is replaced entirely, gears and all. The repair for this issue involves removing and replacing gears. Something your typical BMW Factory trained tech has never done and does not have the tools to accomplish.

 

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That's great to here. Ill ask in February at the dealer show in Toronto as a follow up from your conversation with them.
 

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I was told as I have said earlier that my dealer principal told be after getting in touch with the BMW rep.that the parts will arrive in Australia on the 24th January so my bike is on track for delivery by the end of the month. I dought I will see it until early February but live in hope that the fix and release from BMW`s warehouse will be completed asap and this moth as I am having wild wet dreams about riding my new bike I have been waiting for since late September lol. I am lucky to have loan bike but it is not the same as having your own bike between your legs and loving it to bits. I just hope that what I have been told is 100% correct and my dealership was not being misled by BMW Australia and I am still warm and above the ground to receive my bike this year lol.it is not as if I can not wait (NOT) I do want it now please BMW. Please, pretty Please with butter on top.!!!! The only real reason is below.!!
 

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Please, pretty Please with butter on top.!!!! The only real reason is below.!!
Fresh butter and a bit of Vegemite on warm toast... Yum yum!

:grin:
 
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When I had my transmission repaired last summer, they told me the transmission cassette is over 8k CAD
 

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When I had my transmission repaired last summer, they told me the transmission cassette is over 8k CAD
Good to know. The high cost is probably related to low inventory for what was supposed to be a low failure mode parts bundle. There are going to be lots of spares for certain parts on hand after all of this.
 

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I'd like to see what BMW does about warranty/pricing. I wouldn't want a new bike that had the engine and transmission removed, the transmission torn down and repaired. For me to consider buying a bike like that the warranty has to increase significantly, and the price has to go down significantly as well.
 
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I'd like to see what BMW does about warranty/pricing. I wouldn't want a new bike that had the engine and transmission removed, the transmission torn down and repaired.
This is a slightly unusual situation in that we all know that every bike produced between October 2016 and September 2019 is affected, so "new" inventory with a factory build date prior to October 2019 will have had work carried out on it after it left the factory and prior to sale, but as a general rule purchasers are totally (and blissfully) unaware that their "new" car or bike has had work carried out on it after it left the factory, but before they took delivery of it. Most purchasers would be astonished if they knew the proportion of new vehicles that have rectification work carried out at some point between leaving the factory and them taking the keys.

Why would BMW offer anything different in terms of pricing or warranty on a product that they will be selling as new?
 

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This is a slightly unusual situation in that we all know that every bike produced between October 2016 and September 2019 is affected, so "new" inventory with a factory build date prior to October 2019 will have had work carried out on it after it left the factory and prior to sale, but as a general rule purchasers are totally (and blissfully) unaware that their "new" car or bike has had work carried out on it after it left the factory, but before they took delivery of it. Most purchasers would be astonished if they knew the proportion of new vehicles that have rectification work carried out at some point between leaving the factory and them taking the keys.

Why would BMW offer anything different in terms of pricing or warranty on a product that they will be selling as new?
Because as you point out this is different everyone knows these bike have come apart, and this stop sale recall will cause interruption in the model year roll out. Are they going to roll out 2020's while they have leftover 19's that have come apart? Someone here has already cancelled his order, and found a used K1600 outside the recall. I think these bikes will have to be heavily discounted or BMW will have them for a long time.
 
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My guess is that while current owners, and those who have been caught up in the "stop sale" know about this, many potential purchasers won't, so there will be no incentive for BMW to do anything other than sell it as a new bike with the standard warranty.

I do accept that things may be different in the USA and Canada where the concept of discounting "left over previous model year" stocks is common, but in the UK and the rest of Europe it's relatively unusual to find new K1600's on a dealer's floor unless they're a demo bike, in which case they're sold as "ex-dem" or used anyway.
 

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Because as you point out this is different everyone knows these bike have come apart, and this stop sale recall will cause interruption in the model year roll out. Are they going to roll out 2020's while they have leftover 19's that have come apart? Someone here has already cancelled his order, and found a used K1600 outside the recall. I think these bikes will have to be heavily discounted or BMW will have them for a long time.
The value of the bikes is going to be affected but not by as much as you might think. If as you say demand goes down because of broad market awareness and push back which would be reflected in canceled orders or trend defying slowdown in sales then BMW will have to react in a more broad manner but the problem BMW really has is somewhere between managing expectations internally and externally at the market level, forecasts for supply chain, and consumer demand. BMW, like most modern manufacturers is sitting on a supply chain designed for JIT (Just in time) fulfillment. BMW made a commitment to their supply chain that they would order x number of everything that it takes to build the bike spread over y amount of time. Some vendors will build everything up front (electronics guys for instance), other vendors will build to the demand forecast.

Putting this in perspective. This is a 10 year old design (at least) for which the vast majority of parts are well understood and the supply chain (minus the gearbox supplier) is a well lubed machine with an established history of slow growth and most of those parts don't get a 'model year' designation on them until they are delivered as finished goods (in other words is the fuel tank on your bike a 2012 or a 2018 manufacturing date to exaggerate for emphasis). So the vendors aren't going to cry about it. BMW has a warehouse to floorspace delivery window of lets call it 6 weeks, could be more or less but for the sake of example lets say 6. Somewhere between learning about the problem, diagnosing the problem (weekly if not daily reports coming back from safety/QA/R&D/Manufacturing) they would have made the decision to halt the inflow of vendor supplied parts and they would have the elasticity in their contracts to do this (up to a point) and 9 running years of goodwill with the vendors to lean on. This happened before the stop sale. In the meantime, internally they would have been forecasting how many bikes they need and of which makeup (model, color, features, etc) to address dealer/market demand so they would have slowed down the assembly lines up to the stage of concern (motor build) at the very least. Any WIP (work in progress) inventory at the factory isn't a finished good so doesn't count as 'showroom inventory' yet and up to some point the parts are all generic as to model year so they have other ways of dealing with parts on hand (consume them more slowly). Dealers also know the delivery time and don't want more inventory than they can sell in a reasonable window of time. Add to all of this how they would manage the seasonality of motorcycle sales. Most dealers in any northern latitude would have already tried to clear out some inventory (BMW probably has minimums though) and BMW knows that sales through those dealers is going to slow down for the winter Using our 6 week SWAG they have a combination of whatever was sitting on showroom floors and whatever was at the delivery stage to fulfill that 6 week forecast and that's their inventory exposure. Keeping in mind that the K1600 is a growing segment but a low volume runner in comparison to the ADV/scooter/small displacement segments. Now ask yourself how bad of a problem this is. It isn't really unless someone overreacts at HQ and with another record year under their belts (despite this problem) there is not going to be huge amount of top down pressure so much as their will be bottom up assurances that 'it won't happen again'. The last remaining factor here (market expectations, dealer expectations, inventory, then consumer demand) only the actual consumer vote of confidence (sales) will factor in and internally they (some product line guy) will have already sandbagged expectations around quarterly performance. There just isn't a huge incentive for BMW to manage any value added price adjustments beyond the existing inventory exposure and all of that can be easily managed through finance incentives (0% plus some gimme dealer option) as opposed to price incentives. IOW I wouldn't expect much and would be surprised if any customer incentive turns out to be significant or long lasting (more than 6 weeks). Keep in mind that there is a significant cost behind the scenes for BMW as well, that will also moderate incentives.
 

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IOW I wouldn't expect much and would be surprised if any customer incentive turns out to be significant or long lasting (more than 6 weeks). Keep in mind that there is a significant cost behind the scenes for BMW as well, that will also moderate incentives.
Something else to remember is that today's price cut may benefit today's buyer, but also hurts residual values for existing owners. In the automotive world that most often means a leasing or finance company who is, in turn, owned by... the automotive manufacturer. IOW, there are a whole host of pressing reasons why a manufacturer doesn't want to dump product on the market other than as a last resort.
 

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I'd like to see what BMW does about warranty/pricing. I wouldn't want a new bike that had the engine and transmission removed, the transmission torn down and repaired. For me to consider buying a bike like that the warranty has to increase significantly, and the price has to go down significantly as well.
But the thing is if you bought a new bike and it was not delivered at the time of purchase then it would have the warranty start at first registration not when you bought it. I personally can not see the difference of having a new bike or a second-hand one pulled down to do this fix, with the exception that any bikes still at the BMW warehouse or in the creat would be done by BMW, not the dealerships.
Then, I am sure the dealerships will do a great job and have the back up from BMW should they run into any problems regardless. :wink:
 
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Couple more pics
Looking at those pictures there is a lot more of the bike dismantled than I was expecting, especially for a "cassette" style gearbox.
 
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